Deal size is a sales metric that measures the average value of a sale or transaction.
It is calculated by dividing the total revenue generated by the number of deals closed during a specific period of time, such as a month, quarter, or year.
For example, if a sales team closes 20 deals in a month and generates a total of $100,000 in revenue, the average deal size would be $5,000 ($100,000/20 deals).
Deal size is an important metric in sales as it helps sales teams and organizations to understand their revenue potential, forecast future sales, and make informed decisions about resource allocation and strategy. Increasing the deal size can also help to increase revenue and profitability, as long as the cost of acquisition is kept under control.
Sales teams can work to increase deal size by upselling or cross-selling additional products or services, increasing the value of the initial sale, or targeting higher-value prospects or accounts.
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